Buildings insurance, mortgage and cracks

ivk

Hi. We are about to buy a house with a mortgage and are at the pre-exchange stage. The lender demands a buildings coverage, as usual. The plan was to find a suitable policy using one of the price comparison sites, but from what question forms look like it seems they are designed for those who already own the property to be insured. Would it make any difference if they are answered as if I already own the house?

That apart, the property includes a garage that has, as the survey states it, slight stepped cracking to the rear party wall with exact cause unknown. Does this mean I am supposed to answer 'yes' to questions about whether the property has an ongoing subsidence?

user1977

If you don't know that it's subsidence then no, you can't disclose known subsidence.

What makes you think the comparison sites don't cover new owners?

ivk

user1977 said:

If you don't know that it's subsidence then no, you can't disclose known subsidence.

What makes you think the comparison sites don't cover new owners?

I don't know if they do, hence the question. Comparethemarket, for instance, say that they can only offer policies for houses that you own and ask for the date of purchase.

user1977

ivk said:

user1977 said:

If you don't know that it's subsidence then no, you can't disclose known subsidence.

What makes you think the comparison sites don't cover new owners?

Comparethemarket, for instance, say that they can only offer policies for houses that you own and ask for the date of purchase.

I think that includes houses you will own by the time the policy starts, I doubt it literally means they don't offer cover to homebuyers.

ivk

user1977 said:

I think that includes houses you will own by the time the policy starts, I doubt it literally means they don't offer cover to homebuyers.

Being buyers we are supposed to have coverage by exchange, not completion.

user1977

Well you still have an insurable interest at that point. I don't think they're trying to turn away customers, possibly just pointing out that it's inappropriate for e.g. tenants.

jonnydeppiwish!

ivk said:

user1977 said:

If you don't know that it's subsidence then no, you can't disclose known subsidence.

What makes you think the comparison sites don't cover new owners?

I don't know if they do, hence the question. Comparethemarket, for instance, say that they can only offer policies for houses that you own and ask for the date of purchase.

It’s from date of exchange - most companies are happy with it

eddddy

ivk said:

That apart, the property includes a garage that has, as the survey states it, slight stepped cracking to the rear party wall with exact cause unknown. Does this mean I am supposed to answer 'yes' to questions about whether the property has an ongoing subsidence?

In your position, I would ask your surveyor how to answer the question about ongoing subsidence.

If you answer 'Yes' to the question about the property having ongoing subsidence, I doubt that anyone will insure the building. (And if you don't answer the question honestly, your insurance could be cancelled.)

And obviously, you wont be able to make an insurance claim in relation to an issue that existed before your policy started.

Is the garage detached from the house? Did the surveyor recommend further investigation?

DullGreyGuy

Have you gotten to the process of the seller completing the questionnaire (forget what it's called) which will include questions around subsidence, underpinning etc?